ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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does not reflect workers who have given up searching for a job.
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is not measured accurately.
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counts underemployed workers as unemployed workers.
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does not count any workers above the age of 55.
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Detailed explanation-1: -In particular, the official unemployment rate leaves out discouraged workers and the underemployed. People who have given up looking for work because they are convinced that they cannot find jobs are considered discouraged workers.
Detailed explanation-2: -Another problem with the official unemployment rate is that it doesn’t consider the quality of jobs that workers have. People are considered employed if they have part-time or temporary jobs. They’re also counted as being employed if they have low-skilled jobs that they took just to put food on the table.
Detailed explanation-3: -Unemployment causes workers to suffer financial hardship that impacts families, relationships, and communities. When it happens, consumer spending, which is one of an economy’s key drivers of growth, goes down, leading to a recession or even a depression when left unaddressed.
Detailed explanation-4: -Defective planning is the one of the cause of unemployment. There is wide gap between supply and demand for labour.
Detailed explanation-5: -Unemployment Rate People who have not looked for work in the past four weeks are not included in this measure. It is important to keep in mind that the rate measures the percent of unemployed job seekers in the labor force-the sum of employed and unemployed persons-and not the entire population.